Tuesday, September 28, 2010

Strategies To Benefit From Smart Pricing

Strategies To Benefit From Smart Pricing

The challenge for publishers trying to keep their ad rates high is that there’s no way to know exactly how many of your clicks are converting into sales for your advertisers. You can’t even tell what would count as a sale for the different advertisers you’re promoting. The best you can do is keep track of your clicks and your revenues, and make sure that they rise and fall at the same rates. If following your stats was always important, Smart Pricing has made it absolutely vital. There’s little point in spending hours trying to increase your CTR if the value of your clicks is dropping like a rock. So what should you do if you notice that your income is dropping but your CTR rate remains the same? The first thing you should do is protect yourself. Because one site with a low ROI can affect all the sites in your account, dividing your sites between different accounts would prevent all of your revenues falling if one site underperforms. Officially, that’s a breach of TOS, so you can’t really do it But I don’t see why two different sites can’t be owned by two spouses. If you own more than two sites though... well, I guess you’re stuck. Next, if you suspect that one page has a low ROI, try removing the AdSense code from that page, wait a week and see if you can spot an improvement in your ad prices. If there’s no improvement, replace the code and try taking the code from a different page. You want to find the page that’s poisoning your earnings and keep AdSense ads off it until you can bring in the kind of traffic that suits your advertisers. And that’s where you’re most likely to find the underperforming pages. The pages that are most likely to have the greatest conversion rates for advertisers are those that have the most loyal following. The closer the connection between your site and the interests of your visitors the more likely they are to click on your ads — and buy when they click. So it’s also a good idea to create niche sites that appeal to niche audiences, rather than general sites that bring in audiences interested in a bunch of different things. Those sorts of users will also only have a vague interest in some of the things on your site and could lower your conversion rate.
You might have a blog, for example, in which you discussed your interests in... oh, dogs, computer games and the movies of Mel Gibson. That would bring in users with three different kinds of interests... and three different kinds of ads. But a dog-loving user who clicks on an ad for Mel Gibson DVDs is less likely to actually buy than a Mel Gibson fan. Your conversion rate would drop and the value of every ad you promote would fall too. But if you created three separate blogs, one for each of your interests, you would receive fewer false clicks, and a higher rate of conversion. Ultimately then, the ideal strategy is, as always, to create good content that attracts genuinely interested users.

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